WTH??!! We have to SEND 1099s to companies we do business with? What kinds of companies are those -vendors we buy equipment from? Or do you mean models? Could you go into more details, Sean? I haven't heard anything about this...

Can't believe this was passed in May and this is the first I am hearing of it. I watch the news every day and this little nugget was conveniently not mentioned. What a massive cluster%#@k!!!

It really is an unbelievable burden. Like we have time to track down an EIN from B&H or whatever. And the IRS is so incompetent, it's not like they'd be able to do anything with these billions of forms.

WTH??!! We have to SEND 1099s to companies we do business with? What kinds of companies are those -vendors we buy equipment from? Or do you mean models? Could you go into more details, Sean? I haven't heard anything about this...

Can't believe this was passed in May and this is the first I am hearing of it. I watch the news every day and this little nugget was conveniently not mentioned. What a massive cluster%#@k!!!

It really is an unbelievable burden. Like we have time to track down an EIN from B&H or whatever. And the IRS is so incompetent, it's not like they'd be able to do anything with these billions of forms.

Just ignore it. It's as ridiculous as use tax enforcement. The more we just ignore our government, the better off society will be in my opinion.

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lisafx

« Reply #27 on: November 21, 2010, 15:52 »

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While I agree about the idiocy of this law and the difficulty IRS will have enforcing it, I don't plan to ignore it. Having already been audited for Use Tax, and having to pay over 2k in back taxes, I don't want problems with the IRS too.

We may want to ignore our government, but they don't want to ignore us

While I agree about the idiocy of this law and the difficulty IRS will have enforcing it, I don't plan to ignore it. Having already been audited for Use Tax, and having to pay over 2k in back taxes, I don't want problems with the IRS too.

We may want to ignore our government, but they don't want to ignore us

True, its not without its risks, but I believe the US is finally hitting the boiling point all forms of government eventually reach when the people they govern simply disband that government by any means necessary. The other option... they just leave, while they still can. I've researched expatriation and citizenship renouncing for my own future safety, only to discover I'm basically locked into being a tax paying US citizen for at least 6 years, with another 10 years back tax liability after renouncing citizenship!!!! One of the essential characteristics of a free country is the right to leave at will, expediently if desired. That right no longer exists, especially if your wealthy...

It really is an unbelievable burden. Like we have time to track down an EIN from B&H or whatever. And the IRS is so incompetent, it's not like they'd be able to do anything with these billions of forms.

They will, however, be able to hire thousands of government employees to shuffle those form around around making it look like something is actually being done, therefore creating massive tax increases as we have to pay the salaries and pensions of these new employees, then they will claim that unemployment has dropped radically because they have created lots of new jobs!

Well the Bush administration's mismanagement of the budget and the economy put us in a big hole:

Just trying to dig out of it.

fred

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lisafx

« Reply #31 on: November 22, 2010, 10:21 »

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I can sympathize about having to dig out of the hole. I really can. And I understand my obligation to pay my fair share of taxes.

What is upsetting about this new regulation is that it doesn't really stand to raise new tax revenue, but simply adds absurd layers of paperwork that is placing a crushing burden on every small business owner and independent contractor. In addition to the already-mentioned scores of new IRS employees just to handle the flood of 1099s.

To be honest, I would prefer they just raise my taxes a couple % if they need money, instead of making me jump through all these hoops

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lagereek

« Reply #32 on: November 22, 2010, 10:40 »

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same rubbish here in sweden, they make it harder and harder to pay taxes, in the hope of youll make a misstake, especially as a freelancer, then they can assess you for the highest possible earning and tax you on that.

Im thinking seriously of emigrating to the Caymans, Jersey or Guernsey. Seriously!

Thanks Karimala. Very useful article. Glad folks across the political spectrum see what a dumb idea this was.

Yeah, I think they got a little carried away trying to find the missing $300 Billion. Actually, IRS is pretty efficient overall. Costs them $0.42 to collect $100, and they collect $245 for every dollar of their total budget.

"Senate Finance Committee head Max Baucus says he will introduce legislation to repeal the unpopular tax form expansion."Hey that's my Senator! And what a lame jackass he is. Up for re-election in 2012, I think. I guess he has decided to finally do something non-destructive, after all these years in office.

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lisafx

pretty stupid .. why should they make a form for paypal .. will my bank be sending me a 1099-K .. highly doubt it. But oh well .. until they invent a form that reads your mind and logs all the cash transactions I could care less.

I made the argument that in addition to the paperwork burden, it was highly unlikely to raise the $17 billion they planned/hoped it would as those who currently ducked payment would probably continue. It was just folks like me who pay anyway who'd be stuck with a bunch of useless extra paperwork.

Probably both of you (Cthoman and Pet Chia) are right that this will be too difficult to police. More likely, as you say, they will just use this as an additional charge against businesses they are auditing for other reasons.

Still, I would feel compelled to comply. It might be easy for the IRS to red flag anyone with over X amount of deductions to see if they have filed those 1099s.

This portion of the health care bill will either be repealed or watered down. The president is for repeal of it as well. I just want to add that I was confused briefly because I thought I was going to have to send W9 forms to the grocery store for my food (among other things). Then I realized this is for business related items. Also, it does not take place until 2012.

This portion of the health care bill will either be repealed or watered down. The president is for repeal of it as well. I just want to add that I was confused briefly because I thought I was going to have to send W9 forms to the grocery store for my food (among other things). Then I realized this is for business related items. Also, it does not take place until 2012.

Well, you would if you spent more than $600 in food for your business, as I'm sure I have done this year.

Big healthcare corporations are already pushing hard to keep the bill but remove all of the pieces that they don't want. Like all of the parts that protect us such as them not being able to deny people with preexisting conditions and on and on.

So the nightmare scenario is that this bill does get partially repealled with only the greed left in place.

This portion of the health care bill will either be repealed or watered down. The president is for repeal of it as well. I just want to add that I was confused briefly because I thought I was going to have to send W9 forms to the grocery store for my food (among other things). Then I realized this is for business related items. Also, it does not take place until 2012.

Well, you would if you spent more than $600 in food for your business, as I'm sure I have done this year.

If you pay for the food with a credit card, then you do not have to worry about it. Not sure about a debit card. It's probably the same as the credit card, though.